Section 449 — Housing Act 1985: Terms of advances and administration.

Terms of advances and administration. 449 1 Advances to lending institutions under section 445 (assistance for first-time buyers) shall be on such terms as to repayment and otherwise as may be settled by the Secretary of State, with the consent of the Treasury, after consultation with lending and savings institutions or organisations representative of them; and the terms shall be embodied in directions issued by the Secretary of State.

2 The following matters, among others, may be dealt with in directions issued by the Secretary of State—

a the cases in which assistance is to be provided;

b the method of determining the loan value of property for the purpose of section 446(1)(a) (limit on total loan);

c the method of quantifying bonus by reference to savings;

d the considerations by reference to which a person is or is not to be treated as a first-time purchaser of house property;

e the steps which must be taken with a view to satisfying the conditions in section 446(2) (conditions as to purchaser’s own savings), and the circumstances in which those conditions are or are not to be treated as satisfied;

f the supporting evidence and declarations which must be furnished by a person applying for assistance, in order to establish his qualification for it, and the means of ensuring that restitution is made in the event of it being obtained by false representations;

g the way in which amounts paid over by way of assistance are to be repaid to the lending institutions and to the Secretary of State.

3 The Secretary of State may, to the extent that he thinks proper for safeguarding the lending institutions, include in the terms an undertaking to indemnify the institutions in respect of loss suffered in cases where assistance has been given.